WALTHAM, Mass.--(BUSINESS WIRE)--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the second quarter ended July 2, 2017.
The Company reported GAAP earnings per share from continuing operations of $0.57, as compared to $0.53 in the second quarter of 2016. GAAP revenue in the second quarter of 2017 was $547.0 million, as compared to $536.2 million in the second quarter of 2016. GAAP operating income from continuing operations for the second quarter of 2017 was $76.0 million, as compared to $66.3 million in the second quarter of 2016.
Adjusted earnings per share was $0.67, as compared to $0.63 in the second quarter of 2016. Adjusted revenue for the quarter was $547.1 million, as compared to $536.4 million in the second quarter of 2016. Adjusted operating income for the second quarter of 2017 was $99.6 million, as compared to $94.1 million for the same period a year ago. Adjusted operating profit margin was 18.2% as a percentage of adjusted revenue, up 70 basis points as compared to the same period a year ago. Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.
“We continued to make excellent progress in the second quarter, driving operating efficiencies and executing on our strategic initiatives,” said Robert Friel, chairman and chief executive of PerkinElmer. “During the quarter we announced our agreement to acquire EUROIMMUN and completed the successful divesture of our non-core Medical Imaging business, actions we believe improve our growth trajectory while expanding our capabilities. Based on our overall performance for the first half, we remain on track to deliver our full year 2017 financial commitments.”
Cash Flow
For the first half of 2017, GAAP operating cash flow from continuing operations was $95.6 million, as compared to $107.4 million in the comparable period of 2016.
Financial Overview by Reporting Segment for the Second Quarter of 2017
Discovery & Analytical Solutions
- Revenue was $383.1 million, as compared to $381.5 million for the second quarter of 2016. Reported revenue was flat. Organic revenue increased 1%.
- Operating income from continuing operations was $51.5 million, as compared to operating income of $41.6 million for the comparable prior period.
- Adjusted operating income was $64.0 million, as compared to $60.0 million in the second quarter of 2016. Adjusted operating profit margin was 16.7% as a percentage of revenue, as compared to 15.7% in the comparable prior period.
Diagnostics
- Revenue was $163.8 million, as compared to $154.7 million for the second quarter of 2016. Reported revenue increased 6%. Organic revenue increased 1%.
- Operating income from continuing operations was $37.6 million, as compared to $37.8 million for the comparable prior period.
- Adjusted operating income was $48.8 million, as compared to $47.3 million in the second quarter of 2016. Adjusted operating profit margin was 29.7% as a percentage of adjusted revenue, as compared to 30.5% in the comparable prior period.
Updates Financial Guidance – Full Year 2017
For the full year 2017, the Company now forecasts GAAP earnings per share from continuing operations in the range of $2.23 to $2.31 and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $2.84 to $2.92.
Conference Call Information
The Company will discuss its second quarter results and its outlook for business trends in a conference call on August 3, 2017 at 5:00 p.m. Eastern Time. To access the call, please dial (541) 797-2422 prior to the scheduled conference call time and provide the access code 48363672.
A live audio webcast of the call will be available on the Investor section of the Company’s Web site, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company’s Web site for a two week period beginning approximately two hours after the call.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.
Factors Affecting Future Performance
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities and divestitures and the planned consummation of our agreement to acquire EUROIMMUN. Words such as "believes," "intends," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (5) our failure to adequately protect our intellectual property; (6) the loss of any of our licenses or licensed rights; (7) our ability to compete effectively; (8) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (9) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (10) disruptions in the supply of raw materials and supplies; (11) the manufacture and sale of products exposing us to product liability claims; (12) our failure to maintain compliance with applicable government regulations; (13) regulatory changes; (14) our failure to comply with healthcare industry regulations; (15) economic, political and other risks associated with foreign operations; (16) our ability to retain key personnel; (17) significant disruption in our information technology systems; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) the approval of the Brexit Referendum in the United Kingdom; (21) our ability to realize the full value of our intangible assets; (22) significant fluctuations in our stock price; (23) reduction or elimination of dividends on our common stock; and (24) other factors which we describe under the caption "Risk Factors" in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
About PerkinElmer
PerkinElmer, Inc. is a global leader committed to innovating for a healthier world. Our dedicated team of 9,000 employees worldwide is passionate about providing customers with an unmatched experience as they help solve critical issues especially impacting the diagnostics, discovery and analytical solutions markets. Our innovative detection, imaging, informatics and service capabilities, combined with deep market knowledge and expertise, help customers gain earlier and more accurate insights to improve lives and the world around us. The Company reported revenue of approximately $2.1 billion in 2016, serves customers in more than 150 countries, and is a component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.
